Andhra Bank slips deeper into red with Rs 532 cr loss

Hyderabad: Higher provisioning for bad loans has pushed state-run Andhra Bank on Thursday deeper into the red in the third quarter ended December 31, 2017, with losses of Rs 532 crore as compared to losses of Rs 385.11 for the second quarter of FY18. The bank had posted a net profit of Rs 57 crore during the third quarter of FY17.

The bank accounted for higher provisions and contingencies of Rs 1,862 crore for the third quarter of FY18 as against Rs 853 crore in the corresponding quarter of FY17.

The gross NPA of the bank stood at Rs 21,599 crore for Q3FY18 (GNPA ratio of 14.26%) as compared to Rs 19,839 crore (GNPA ratio 13.27%) during Q2FY18. The net NPA of the bank stood at Rs 10,858 crore (NNPA ratio 7.72%) for the December 2017 quarter as compared to Rs 10,574 crore (NNPA 7.55%) for September 2017. The provision coverage ratio of the bank shot up to 57.44% for the third quarter of FY18 as against 55.25% in the second quarter of FY18 and 52.12% for the third quarter of FY17, the bank said in a release. The bank’s net interest income, however, increased 37% to Rs 1672 crore during Q3FY18 from Rs 1218 crore in Q3FY17. The net interest margin improved to 3.46% during the third quarter of FY18 as compared to 2.66% in the corresponding quarter of FY17.

Overall business grew 5.74% during the quarter to Rs 3,51,735 crore from Rs 3,32,630 crore in the corresponding quarter of last fiscal.